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Exploring TQM and SCM Practices Influence On Oil
Pipelines Company's Performance.
RAMI H. FOUAD Department of Industrial Engineering, The University of Jordan, Amman, Jordan
Email: [email protected]
ZEYAD M. HAMED
Business Administration Department, Al-Iraqia University, Baghdad, Iraq.
Email: [email protected]
OMER A. ABDULWAHHAB
Statistics Department, Diyala University, Diyala, Iraq.
Abstract
Many researchers during the 21st century believe that both Total Quality Management (TQM) and Supply
Chain Management (SCM) as a vital strategy for manufacturing, and services and its implications covered
all small, medium and large scale enterprises. The purpose of this an analytical study was Measure the
impact of Total Quality Management and Supply Chain Management practices on the Firm's Performance
in Oil Pipelines Company (OPC) in Baghdad, Iraq. The study utilized primary Data was collected through
questioners survey conducted during August 2015, questioners was distributed among the managers of Oil
Pipelines Company in Iraq which is expected to has a best knowledge about the TQM & SCM and its
impact on the firm's performance. This study supports the main hypothesis, that (TQMP) & (SCMP)
positively impact the firm performance, and tested using Path Analysis performed by AMOS software
package. The main finding proves that there is a strong relationship between TQM and SCM practices and
dimensions on firm's performance. The main conclusion shows that (TQMP) & (SCMP) have positive and
significant effect on Firm Performance, and this is clarified through the extrusive Firm Performance
change whenever the TQM and the SCM Practices change .
Key Words: Quality Management (QM), Total Quality Management Practices (TQMP), Supply Chain
Management Practices (SCMP), Firm Performance (FP), Oil Pipelines Company (OPC).
Introduction
Changes in dynamic business environment followed by intense competition require companies to thrive for
existence and survival. Manufacturing companies efforts to win the competition not only directed towards
quality, but seek ways to make the product reach the customer faster. The global marketplace is constantly
changing, offers quality products is not enough, but nowadays a new challenge is focused on the timing and
delivery place for the product. TQM and SCM become a prerequisite for success in the global marketplace.
The higher the intensity of competition in a global context has prompted many organizations to implement
SCM as a strategy to meet customer needs and satisfaction. In accordance with this opinion Gunasekaran
and Mc Gaughey (2003); Gunasekaran et al. (2001), Mills et al, 2004, in the Lamey (1996), agreed that
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TQM and SCM aim to achieve customer satisfaction. (Ardianto and Natsir, 2014, 1) SCM and TQM are
more than simple tools or techniques. They are management Philosophies implemented as large-scale
management systems that consist of various sets of practices. Both SCM and TQM aim to achieve customer
satisfaction as the ultimate goal basically, customers require better product quality, faster delivery and
lower cost. However, traditional QM focuses on specification-based performance. It emphasizes inspection
to prevent delivering defect products to the customer (Vanichchinchai and Igel, 2011, 3407).
TQM is an approach for continuously improving the quality of goods and services delivered through the
participation of individuals at all levels and functions of an organization. In the last two decades, numerous
literatures have been devoted to analyzing the essences of TQM and how it should be implemented in
organizations. Especially in the 1990s, several researches was performed to investigate the relationship
between practices of TQM and organizational performance, (Malik et al., 2012, 20).
The importance of SCM practices attracted the attention of well reputed educational institutions around the
globe as a business necessity due to the growing demand of the business world (Ballou, Gilbert &
Mukherjee, 2000). Donlon (1996) stated SCM practices as practices that contain supplier partnership,
outsourcing, cycle-time compression, process flow and information sharing. Otto and Kotzab (2003)
labeled SCM practice as a distinct form of strategic partnership amongst sellers and suppliers, (Hussain et
al., 2014, 352). This study will investigate the possible relationship between TQM practices and
performance on one hand, and the relationship between SCM practices and performance on the other hand.
Similar studies have been undertaken abroad but in Iraq there are very few studies been carried out related
to TQM and SCM practices, but there is no study explores the impact of TQM and SCM practices on firm's
performance.
Literature Review
The study focused on recent articles related to TQM and SCM practices, aiming to understands which
practices are better for companies striving to achieve higher performance.
Total Quality Management Practices
During the last couple of decades, a number of studies demonstrate that TQM has benefited organizations
through improving quality of products and services, thus offering superior quality products to their
customers and enhancing firm's performance (Al-Ettayyem, Rawan and Al-Zu‟bi, Zu‟bi, 2015, 79). In
recent years, the level of awareness towards TQM has increased considerably due to intense global
competition, increasing consumer consciousness of quality, rapid technology transfer, and trends towards
achieving world class status. In response to these challenges and to facilitate the organizations in achieving
higher quality levels, many companies are implementing TQM approach and quality initiatives for
achieving sustainable competitive advantage and enhanced company performance, (Kheni and Ackon,
2015, 37).
TQM is a management strategy aimed at embedding awareness of quality in all organizational processes.
Customer focus, process improvement and total involvement are the three fundamental principles of TQM.
At organization level, however (House1998) suggests that empowerment could be achieved through
employee selection and training programs designed to provide required technical skills together with a
culture that encourage self-determination and collaboration instead of competition. Schlesinger et al.,
(1991a, b) found that employee’s perception of service quality positively relates to job satisfaction, job
commitment, and pride of workmanship. Related finding reported by (Tornow and Wiley, 1991) are
employee attitudes-measured by feelings about reward for performance, work itself, management practices,
satisfaction with the company, work group climate, and a culture for success are related to customer
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satisfaction, (Siddiqui et al., 2012, 14). Leaching the literature, six important dimensions to measure the
impact of TQM practices are selected as follows: (1) Top -management commitment, (2) customer focus,
(3) Training and education; (4) Continuous improvement and innovation; (5) Supplier management; (6)
Employee involvement. (Ardianto and Natsir, 2014, 2).
Supply Chain Management Practices
The challenge for firms today is not just to take up a SCM initiative but also to implement it successfully as
the future shall look for competition among supply chains. (Ellaram and Cooper, 1990) defined that SCM is
an integrative philosophy to manage the total flow of distribution channel from supplier to ultimate user,
(Siddiqui et al., 2012, 13). SCM practices have been defined as the collection of activities undertaken in a
firm to endorse effective management of its supply chain (Li et al., 2006). (Tan et al., 2002) include supply
chain integration, information sharing, establishment of customer relations and quality in identification of
SCM practices, (Konstantinou et al., 2010, 3). The latest evolution of SCM practices, which includes
supplier partnership, outsourcing, continuous flow, and information technology sharing. The concept of
SCM practices include agreed vision and goal, information sharing, cooperation, long term relationship and
agreed supply chain leadership, The three main strategic imperatives that emerged in this century are low
cost, high quality and improved responsiveness (both delivery time and flexibility of product delivery)
(Siddiqui et al., 2012, 13). Refining the literature, six important dimensions to measure the impact of SCM
practices are selected as follows: (1) Customer relationship; (2) Materials management, (3) Strategic
supplier partnerships; (4) Information and communication Technologies; (5) Corporate culture; (6(Close
the supplier partnership. (Ardianto and Natsir, 2014, 3).
(Talib et al., 2011) worked on a project that links the TQM practices to SCM practices as shown by Table
(1) a set of 12 practices applicable to different organization were identify around 50 TQM practices and 90
SCM practices. The study revealed that implementation of these TQM and SCM practices in the
organization will result in many desirable outcomes and benefits such as customer satisfaction; JIT delivery
and reduced cycle time, (Frederico and Souza, 2014, 2).
Table (1) TQM & SCM Practices
TQM practices SCM practices
Top-management commitment Customer relationship
Customer focus Material management
Training and education Strategic supplier partnership
Continuous improvement and innovation Information and communication technologies
Supplier management Corporate culture
Employee involvement. Close supplier partnership
Source: Frederico, Guilherme and Souza, Thamires, "Supply chain management practices: a classification
based on the literature review", 2014, 2
Firm Performance
The concept of firm performance needs to be distinguished from the broader construct of organizational
effectiveness. (Venkatraman and Ramanujan, 1986) offered an enlightening figure of three overlapping
concentric circles with the largest representing organizational effectiveness. This broadest domain of
organizational effectiveness includes the medium circle representing business performance, which includes
the inner circle representing financial performance. Organizational effectiveness covers other aspects
related to the functioning of the organization as absence of internal strain and faults, engagement in
legitimate activities, resource acquisition and accomplishment of stated goals (Cameron, 1986a). Business
performance, or firm performance as mentioned in this study, is a subset of organizational effectiveness
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that covers operational and financial outcomes, (Santos and Brito, 2012, 98). Performance measurement is
very essential for the proper management of any organization. Scholars have used different performance
types such as financial, business, innovative, operational and quality performance while examining the
relation between TQM practices and performance (Zehir et al., 2012). Literature on TQM practices
incorporates diversified measures of performance such as Corporate Performance (Easton and Jarrell,
1994), Business Performance (Brah et al., 2000), Organizational Performance (Sterman et al., 1997), Plant
Performance (Choi and Eboch, 1998), Operational Performance (Terziovski and Samson, 1999), Financial
Performance (Agus and Hassan, 2000) and Stock Price Performance (Hendricks and Singhal, 2001).
However, the existing studies do not provide much evidence on how exactly TQM practices affect
performance, i.e. they do not allow comparison with the level of improvement of different dimensions of
performance due to TQM adoption (Kumar et al., 2009). Therefore, to measure the impact of TQM
practices on various levels of improvement. (Ul Hassan et al., 2012, 237). Koh et al., (2007) and Petrovic -
Lazarevic et al., (2007) examines organizational performance from the perspective of SCM. (Koh et al.,
2007) rightly stated that although organizational performance measured by financial and market criteria,
the short-term goal of SCM is to improve productivity and reduce inventory and lead times while the long
term goal of SCM is to increase market share and integration of the supply chain. Other researches
suggested that there is a direct link between the SCM practices and the organizational performance, some
studies emphasized on operational measures, while others stressed on financial measures. Numerous
studies have been used different indicators to measure the firm performance such as the growth of sales, the
growth of market share and the profitability perceived value, customer loyalty, market performance and
financial performance product quality, customer service, competitive position, market share, (Sabry, 2015,
263). This study the researchers will apply six indicators to measure organizational performance namely:
(1) lead time, (2) inventory turnover, (3) product rejection / return, (4) sales level, (5) cost reduction and (6)
meeting customers ' requirement, (Ardianto and Natsir, 2014, 3)
The Oil Pipelines Company in Iraq is using the six indicators mentioned above for TQM, SCM and Firm
Performance in evaluating performance level. This is the reason behind focusing only these indicators.
Moreover, this paper is targeting the measure of the interrelation strength between all three variables
namely TQM, SCM and Firm Performance.
Related Work
1- Ardianto, & Natsir, (2014), "Hybrid Strategies Study: Total Quality Management Practices and Supply
Chain Management as a New Antecedent to Improve the Performance of Manufacturing in East Java".
The purpose of this study was to examine the practice of TQM and SCM in improving the performance of
manufacturing firms in East Java .The research methodology is quantitative (positivist) will be used to
answer the research question Survey method used in this study. The sampling method used in this study is
the probability sampling. Sampling techniques in this study using simple random sampling technique by
means of the drawing (lottery). Analysis using multivariate statistical method (Structural Equation
Modeling).Research shows that strong commitment from leadership, customer- oriented company, carrying
out education and training, leadership has the initiative to make continuous improvements and innovative,
managing suppliers and led efforts to encourage employees to participate fully in the development of the
required quality in the Practice run TQM has an important role to improve Organizational Performance.
The results of this experiment indicate that the management of materials is good, Customer relationship and
corporate culture in the running SCM Practice has an important role to improve Organizational
Performance. The research proves that the practice of TQM and SCM Practices proved to be a hybrid
Strategy in improving Organizational Performance. This study also answered a question that has always
been a debate in the international discussions, that the practice of TQM and SCM practices are something
different. Research shows that strong commitment from leadership, customer- oriented company, carrying
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out education and training, leadership has the initiative to make continuous improvements and innovative,
managing suppliers and led efforts to encourage employees to participate fully in the development of the
required quality in the Practice run TQM has an important role to improve Organizational Performance.
The results of this experiment indicate that the management of materials is good, proximity to customers
and corporate culture in the running SCM Practice has an important role to improve Organizational
Performance. The research proves that the practice of total quality management and practice supply chain
management proved to be a hybrid Strategy in improving Organizational Performance. This study also
answered a question that has always been a debate in the international discussions, that the practice of
TQM and SCM practices are something different. (Ardianto, and Natsir, 2014, 1)
2- Ul Hassan, Masood and et al., (2014), "An Empirical Assessment of TQM Dimensions and Their
Relationship with Firm Performance: Evidence from the Textile Sector of Pakistan".
This study examines the association of TQM practices i.e. leadership, employee fulfillment, continuous
improvement, process management, learning, cooperation and customer focus with firm performance in the
Textile Sector of Pakistan. The quantitative data were obtained through a questionnaire survey from 175
executives of Pakistan’s Textile Sector. With the help of SPSS, data were analyzed by factor, reliability,
and correlation and regression analysis. The results reveal the positive and significant effects of TQM
practices on firm performance. The study generates valuable findings for quality management and top
management executives by highlighting the aspects of TQM which predicts operational efficiency, product
& service quality, employee & customer satisfaction, public responsibility and financial performance.
Hence, organizations may embrace the practice of TQM in search of business excellence. (Ul Hassan et al.,
2014, 696).
3- Hussain, Wajahat and et al., (2014), "The Effects of Supply Chain Management Practices (Strategic
Suppliers Partnership, Information Sharing, and Postponement) On Organizational Performance in
Consumer Goods Manufacturing Industry of Pakistan"
This research conceptualizes the effects of SCM practices (SSP, IS, and POS) and tests the relationships
between SCM practices and OP in consumer goods manufacturing industry at Pakistan. A questionnaire of
SCM practices as a multi-dimensional construct that encompasses upstream and downstream sides of
supply chain (Li et al, 2006) was used to collect the data of 331 managers and employees from 83
consumer goods manufacturing companies. The supply chain practices at Pakistani environment are not
that much practiced as the results depict that SSP is positively impacting OP while level of IS and POS are
negatively correlated to SCM practices due to cultural and environmental circumstances and nature of the
practices. (Gibson, Mentzer, & Cook, 2005) brightened the fact that SCM is in its initial/ early phases of
progression. The expertise of, why and how SCM practices touches firms performance, which extents are
predominantly/especially important is still incomplete. The above reasons also confirm that the supply
chain practices are in its inception stage at Pakistan. (Hussain et al., 2014, 351)
Research Methodology
Research Aim & Problem
The aim of the present work is to understand and analyze TQM practices, SCM practices and their impact
on (FP) firm performance in Oil Pipelines Company, in Baghdad, Iraq. This leads to the following research
questions of this study:
1- Is there a relationship between TQM Practices, SCM Practices and Firm Performance in Oil Pipelines
Company in Iraq?
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2- Is there any impact of TQM practices on Firm Performance in Oil Pipelines Company in Iraq?
3- Is there any impact of SCM practices on Firm Performance in Oil Pipelines Company in Iraq?
Research Framework and Hypotheses
The figure (1) below is the research framework developed in this research. The framework shows that
TQM practices and SCM practices can effect on the firm performance. The research framework could be
seen as follows.
Figure 1: Research Framework
Research framework above generates three hypotheses will be tested in the study.
Therefore, the hypotheses could be formulated as follows:
H1: There is a significant correlation between (TQM) Practices, (SCM) Practices and the (FP) Firm
Performance.
H2: There is a significant impact of (TQM) Practices on (FP) Firm Performance.
H3: There is a significant impact of (SCM) Practices on (FP) Firm Performance.
Research Design
The research approach is quantitative (positivist) will be used to answer the research question. Survey
method used in this study. Data were collected through Questionnaire. Using a Likert scale of (1-5) as an
approach to facilitate the measurement of perception Relationship latent variables and indicators are
reflective. Independent variables reflected TQM six indicators, namely (1)Top-Management commitment,
(2)customer focus,(3)Training and education; (4)Continuous improvement and innovation; (5)Supplier
management, (6(Employee involvement and SCM practices reflected six indicators : (1) Customer
relationship (2)Materials management, (3)Strategic supplier partnerships; (4)Information and
communication Technologies; (5)Corporate culture; (6)Close the supplier partnership and performance
variables. While the dependent variable, is the firm performance and also includes six indicators, namely
(1)Lead time, (2)Inventory turnover, (3)Product rejection / return; (4)Sales level, (5)Cost reduction
(6)meeting customers' requirements.
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Analytical Framework of Research
Questionnaire surveys were distributed to the 60 staff of Oil Pipelines Company. Only 50 valid
questionnaire surveys were utilized for analysis. The target sample is managers of Departments heads,
division’s managers, deputy managers, managerial offices directors and staff. The questionnaire
distribution process took one week then followed by data validation and analysis on SPSS.
Table (2): The Demographic variables
Position
Frequency Percent Valid Percent Cumulative
Percent
Valid
Department Manager 9 18.0 18.0 18.0
Division official 14 28.0 28.0 46.0
Division official
Assistant 8 16.0 16.0 62.0
Unit official 7 14.0 14.0 76.0
Employee 12 24.0 24.0 100.0
Total 50 100.0 100.0
Age
Valid
42- 7 02.1 02.1 02.1
01- 5 01.1 01.1 42.1
03- 00 44.1 44.1 23.1
24- 05 01.1 01.1 73.1
48 and more 04 42.1 42.1 011.1
Total 51 011.1 011.1
Sex
Valid
male 22 ...1 ...1 ...1
female 3 04.1 04.1 011.1
Total 51 011.1 011.1
Study
Valid
B.Sc. in Engineering 0. 73.1 73.1 73.1
B.Sc. 04 42.1 42.1 011.1
Total 51 011.1 011.1
Service Period
Valid
less than 20 years . 03.1 03.1 03.1
5-01 3 04.1 04.1 4..1
00-05 00 43.1 43.1 52.1
03-41 02 4..1 4..1 .4.1
20 years and more 9 0..1 0..1 011.1
Total 51 011.1 011.1
Table (2) shows that most of the respondents are the Division officials with 28%. Most of the respondents
are within the age category of (42-48 years), gender is (male), BSc holders and experience between (16-20)
years.
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Description and Diagnosis of Research Variables
Table (3): The averages and standard deviations of the responses of the research sample
Descriptive Statistics
N Mean Std. Deviation
X11:Top-management
commitment 50 3.8400 0.64326
X12:Customer focus 50 3.7667 0.59190
X13:Training and education 50 4.1867 0.49560
X14:Continuous improvement and
Innovation on product 50 3.6933 0.59796
X15;Supplier management 50 3.7933 0.57099
X16:Employee involvement 50 3.9867 0.69321
TQM Practices 50 3.8778 0.46940
X21:Customer Relationship 50 3.9200 0.51534
X22:Materials Management 50 3.9733 0.55468
X23:Strategic Supplier Partnership 50 3.7267 0.76396
X24:Information and
Communication Technologies 50 4.0933 0.72230
X25:Corporate culture 50 3.6733 0.88957
X26:Close supplier partnership 50 3.7267 0.57020
SCM Practices 50 3.8522 0.48075
Y11:Lead time 50 3.4733 0.57574
Y12;Inventory turnover 50 3.6600 0.56540
Y13:Product rejection/return 50 3.5267 0.53913
Y14:Sales level 50 3.5600 0.60774
Y15:Cost reduction 50 3.8933 0.49688
Y16:Meeting customers’
requirement 50 3.9267 0.49161
Firm Performance 50 3.6733 0.42955
Table (0) clarifies that the averages and standard deviations of the responses to research sample. It was
found that the (Firm Performance got higher Homogeneity than TQM Practices & SCM Practices with
standard deviation 0.43 and average 3.7.
Testing Hypotheses of Correlation
The significant of correlation between the TQM Practices & SCM Practices and the Firm Performance
will be tested based upon null hypothesis that say: there is no correlation between TQM Practices & SCM
Practices and the Firm Performance, against the alternative hypothesis that say :there is a correlation
between TQM Practices SCM Practices and the Firm Performance.
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Table (4): Correlation
Figure 2: Relationships of variables by correlation
Table (4) illustrates the strength of correlation between SCM Practices & Firm Performance is 0.86. This
correlation is considered strong and the power of correlation between Firm Performance and TQM
Practices is 0.82 as well. as Shows in figure (2) above.
Testing Hypotheses of a Significant Impact
The significant of correlation between the impact of the TQM Practices & SCM Practices on the Firm
Performance will be tested based upon null hypothesis: there is no impact of TQM Practices & SCM
Practices on the Firm Performance, against the alternative hypothesis that say: there is an impact of TQM
Practices &SCM Practices on the Firm Performance.
Table (5): Testing a significant impact
ANOVAb
Model Sum of
Squares df. Mean Square F Sig.
1
Regression 7.006 2 3.503 80.917 .000a
Residual 2.035 47 .043
Total 9.041 49
a. Predictors: (Constant), TQM , SCM
b. Dependent Variable: Firm Performance
Correlations
TQM
Practices SCM Practices Firm Performance
TQM Practices
Pearson Correlation 1 .835**
.822**
Sig. (2-tailed) .000 .000
N 50 50 50
SCM Practices
Pearson Correlation .835**
1 .860**
Sig. (2-tailed) .000 .000
N 50 50 50
Firm Performance
Pearson Correlation .822**
.860**
1
Sig. (2-tailed) .000 .000
N 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
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Table (5) describes the value of significance test is equal to (0.000), if value is compared with probability
of error at 0.05, found it less than (0.05). Therefore the null hypothesis will be rejected and the alternative
hypothesis is accepted. In another words there is impact of TQM Practices SCM Practices on the Firm
Performance.
Table (6): Model Summary
Model Summary
Mode
l R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .880a .775 .765 .20807
a. Predictors: (Constant) TQM , SCM
Table (6) shows the value of R2 equals (0.775). This means that the TQM Practices &SCM Practices may
explains the percentage of (77.5%) of the changes in Firm Performance.
Table (7): Coefficients Model
Coefficients a
Model Unstandardized Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
1
(Constant) .482 .255 1.893 .065
TQM Practices .316 .115 .345 2.747 .009
SCM Practices .510 .112 .571 4.542 .000
Dependent Variable: Firm
Performance
Table (7) clarifies that the coefficients of TQM & SCM is significant because it is less than 0.05. This
means that the TQM & SCM has a tangible effect on Firm Performance.
Figure 3: Relationships of variables presented in the Conceptual Model
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The values shown in Figure (3) prove the relations between TQM & SCM and FP.
Testing hypotheses of a significant Homogeneity Average
To test the significant of differences between TQM Practices, SCM Practices and Firm Performance in
this samples; one way ANOVA is used. Table depends on null hypothesis: there is no different between
Practices, SCM Practices and Firm Performance in these samples. The opposite alternative hypothesis that
says: there is a different between Practices, SCM Practices and Firm Performance in these samples.
Table (8) compare of means
one way ANOVA ( position)
Sum of
Squares df Mean Square F Sig.
TQM
Practices
Between Groups 1.105 4 .276 1.282 .291
Within Groups 9.691 45 .215
Total 10.796 49
SCM
Practices
Between Groups 2.562 4 .641 3.290 .019
Within Groups 8.763 45 .195
Total 11.325 49
Firm
Performance
Between Groups 2.509 4 .627 4.322 .005
Within Groups 6.532 45 .145
Total 9.041 49
one way ANOVA ( age)
TQM
Practices
Between Groups 0.553 2 .0.9 0..92 1.04.
Within Groups 9.420 25 .415
Total 01.793 29
SCM
Practices
Between Groups 0..31 2 .235 4.400 1.1.0
Within Groups 9.232 25 .401
Total 00.045 29
Firm
Performance
Between Groups 0.111 2 .751 5.5.. 1.110
Within Groups 3.120 25 .002
Total 9.120 29
one way ANOVA ( sex)
TQM
Practices
Between Groups 0.251 0 0.251 7.225 1.119
Within Groups 9.027 2. .095
Total 01.793 29
SCM
Practices
Between Groups .311 0 .311 4.3.3 1.01.
Within Groups 01.745 2. .440
Total 00.045 29
Firm
Performance
Between Groups 0.0.. 0 0.0.. ..714 1.115
Within Groups 7.350 2. .059
Total 9.120 29
one way ANOV (study)
TQM
Practices
Between Groups 0.039 0 0.039 3.971 1.100
Within Groups 9.247 2. .093
Total 01.793 29
SCM Between Groups .035 0 .035 .701 1.212
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Practices Within Groups 00.031 2. .404
Total 00.045 29
Firm
Performance
Between Groups .245 0 .245 4.03. 1.001
Within Groups ..303 2. .079
Total 9.120 29
one way ANOV (service Period)
Sum of
Squares df Mean Square F Sig.
TQM
Practices
Between Groups 5.264 4 1.316 10.706 .000
Within Groups 5.532 45 .123
Total 10.796 49
SCM
Practices
Between Groups 5.725 4 1.431 11.501 .000
Within Groups 5.600 45 .124
Total 11.325 49
Firm
Performance
Between Groups 5.095 4 1.274 14.527 .000
Within Groups 3.946 45 .088
Total 9.041 49
Table (8) clarifies that there are differences in values for TQM of ( position , age , sex) and no differences
in ( study , service Period ) , concerning SCM there are differences in values for SCM of (age , sex , study
) and no differences in (position, service Period, and for Firm Performance there is a difference in values of
( study ) and no differences in other demographic factors.
Conclusions
The actual study focuses on the main dimensions of TQM practices, SCM practices and firm performance.
There are many conclusions drawn out of this research as follows:
It is quite clear from questionnaire response that the largest percentage of the Division official are aged
is (42-48), holding B.Sc. in engineering, and have experience of not less than 16 years in their field.
This explains the high accuracy in answering the related questions.
Training and education has the minimum standard deviation which is 0.49 with a mean of 4.2. This
proves the homogeneity in the answers in TQM, and in SCM. The Customer Relationship came less
standard deviation of 0.51 with a mean of 3.9, and finally the Firm Performance has less standard
deviation which is 0.49 with a mean of 3.9. Again this proves the homogeneity in the answers.
A strong positive correlation between the SCM Practices and the Firm Performance of 0.866. The
correlation between the TQM Practices and Firm Performance is 0.822 which is considered positive as
well.
The existence of the impact of each of the TQM Practices and the SCM Practices on Firm
Performance. This confirms that the Firm Performance will change whenever the TQM Practices and
the SCM Practices changed in a positive correlation.
The value of R2 equal to (0.775) which means that the TQM Practices & SCM Practices may influence
the value of (77.5%) represents the changes in Firm Performance.
The coefficients of TQM & SCM are significant because a value less than 0.05 means the TQM &
SCM has an effect on Firm’s Performance.
The existence of differences in the answers to TQM Practices &SCM Practices questions in terms of
sex and age and the absence of differences in the answers to service period in TQM Practices &SCM
Practices.
ISSN: 2306-9007 Fouad, Hamed & Wahhab (2015)
1082
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www.irmbrjournal.com December 2015
International Review of Management and Business Research Vol. 4 Issue.4
R M B R
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